1. Of the judgment of the court of first instance, the part against the Defendant (Counterclaim Plaintiff) regarding the principal lawsuit shall be revoked, and that part shall be revoked.

1. Basic facts

A. The Plaintiff is a reconstruction association established under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents in order to implement a reconstruction project (hereinafter “the instant project”) on the ground of Gangseo-gu Seoul Metropolitan Government and six lots (hereinafter “instant land”). The Plaintiff is a reconstruction association established under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, and the Defendant entered into a contract with the Plaintiff for the construction of reconstruction of the apartment house on

B. On September 9, 2006, the Plaintiff entered into a contract for the said reconstruction construction with the effication construction company (hereinafter “effication construction”). On October 13, 2006, the Plaintiff borrowed KRW 3,000,000 from the future mutual savings bank of the company (hereinafter “unfication savings bank”), and used it as purchase cost of the project site for the said construction, union members relocation expenses, association establishment authorization expenses, and construction cost for the said construction.

Felim Construction waived the above construction on April 2, 2008. As of February 29, 2008, the progress rate was 13.08%. At that time, the Plaintiff was liable for the principal and interest of the loan equivalent to KRW 3,170,000,000 to the future savings bank due to the disbursement of expenses, etc. for the instant project.

C. As seen below, the Plaintiff selected the Defendant as a new contractor on April 28, 2008 and considered the construction amount to be KRW 3,257,376,00 between the Defendant and the Defendant on April 28, 2008, the instant construction contract was concluded by the so-called conclusive shares in which the Defendant, a contractor, collects construction costs and construction gains from the Plaintiff’s members’ contributions and the purchase price in an apartment unit with the Defendant. As such, the construction contract in this case was concluded by the so-called conclusive shares in which the Defendant would recover construction costs and construction gains from the Plaintiff’s members’ contributions. The construction amount of KRW 3,257,

The construction period was set as 12 months from the commencement date of the construction, and the construction contract was entered into with a conclusive shares agreement on the construction project that newly constructs D apartment on the ground of the instant land (hereinafter referred to as “instant apartment”).

(c).